Prosecutor's Office Detains 2 Suspects for Alleged Corruption in the Construction of the Kuansing Riau Hotel

RIAU - The prosecutor's office has detained two suspects with the initials HY and S on suspicion of corruption in the construction of the Kuansing Hotel for the 2014-2015 fiscal year which caused state financial losses of around IDR 22 billion.

HY was Head of the Kuansing Regional Planning and Development Agency (Bappeda) in 2011-2013. Meanwhile, S was Head of the Land Division for the 2009 - 2016 period.

"Yes, a follow-up witness examination was carried out on HY and S. Both of them were immediately detained", said Head of Intelligence at the Kuantan Singingi (Kuansing) Riau District Prosecutor's Office, Rozi Juliantono, Friday 10 November, reported by Antara.

Before the suspects were named, both of them were summoned by Kuansing Prosecutor's Office investigators to be questioned in their capacity as witnesses.

After being examined, investigators concluded that there was a criminal act of corruption which resulted in state/regional financial losses in the project carried out in 2014, amounting to IDR 22,637,294,608. This is based on the Audit Results Report (LHA) from the Riau Representative Financial and Development Supervisory Agency (BPKP).

"For now, the investigative team has just named HY and S as suspects", said Rozi.

Both of them were entrusted to the Class IIA Teluk Kuantan Correctional Institution (Lapas) after confirming they were in good health based on the results of examinations carried out by the Kuansing Regional Hospital Medical Team. "HY and S are being detained for the next 20 days, starting from 9 to 28 November 2023", continued the Head of Intel.

On that occasion, Rozi explained the reasons for his detention during the investigation process. As a subjective reason, because it is feared that the suspect will run away, damage or lose evidence and/or repeat a criminal act.

"As well as objective reasons, the alleged criminal threat is more than five years", stressed Rozi.

For their actions, the two suspects are suspected of violating Article 2 paragraph (1) in conjunction with Article 3 in conjunction with Article 18 of Law (UU) of the Republic of Indonesia Number 31 of 2009 as amended and supplemented by Law of the Republic of Indonesia Number 20 of 2021 concerning the Eradication of Corruption Crimes, Jo Article 65 paragraph (1) Jo Article 55 Paragraph (1) 1st Criminal Code.

It is known that the construction of the Kuansing Hotel is part of the three pillar project of the Kuansing Regency Government (Pemkab), together with the Modern Based Traditional Market and the UNIKS Building. This project was carried out in 2014, sourced from the local district APBD.

The budget for the Modern Based Traditional Market reached IDR 44 billion and the construction was carried out by PT Guna Karya Nusantara. Meanwhile, UNIKS and Hotel Kuansing have a budget of IDR 51 billion and IDR 41 billion respectively.

The construction, which started from 2014 to 2015, was not completed and was again budgeted for additional costs in 2015 with a budget of IDR 5 billion each for the market, IDR 8 billion for the Kuansing Hotel and IDR 23 billion for UNIKS. However, until now the construction of the three projects has not been completed and has stalled.